King Cash Threatens the Reign of Credit Markets From U.S. to Europe

  • Higher rates on U.S. risk-free curb appeal of high grade: Citi
  • Euro credit sensitive to real yield outlook in dollars
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Investors reaching for yield are now finding it’s less of a stretch.

Global credit markets are on the cusp of a post-crisis regime shift as higher rates on short-dated U.S. Treasuries challenge the investment case for high-grade corporate bonds -- on both sides of the Atlantic.